Tag Archives: Tax

Those who took a foreign holiday this Easter may have whiled away the hours in the departure lounge by studying the small print of their booking – in particular the bit detailing the extortionate taxes attached to the cost of their flights. It’s always a cough-splutter moment (and air passenger duty has gone up by a further eight per cent this month).

Yet it’s not just the hidden costs of a holiday. Families know that wherever they turn, they are paying more, and will continue to do so. The Budget might have attracted derision for reducing the top rate of tax, but its actual message was the opposite: one of perpetually rising taxes, stretching far into the future. The fiscal challenge facing this Government, and those that will follow it, gets tougher, not easier. Indeed, we should ask ourselves why so many of our politicians find it easy to get exercised about tax cuts that are marginal in fiscal terms, when they should be steaming about how taxes are rising relentlessly for those on middle incomes, who form the backbone of the economy.

1. Both tax “loopholes” Barclays was intending to exploit are quite widely used by UK banks, so much so that Barclays, advised by both its auditors and lawyers, really didn’t think there would be in any problem with them. It assumed they would be approved.

2. The fact that they weren’t shows that the environment around big corporations and tax has changed. It’s becoming politicised and quite unpredictable.

3. In the past, the Revenue has tended to tolerate tax avoidance by big multinationals as a way of keeping the UK tax competitive with overseas jurisdictions. There are far more global corporations headquartered in the UK than any other European country, bringing abundant, high value employment to the capital, and that’s plainly got something to do with a relatively lenient tax environment.

4. The Coalition managed to stem the flow of corporate exits from the UK by killing off the previous Government’s threat to tax the profits of overseas subsidiaries, though it has not succeeded in reversing it. WPP, the advertising goliath, said it would consider redomiciling back to the UK as a result of the change, but hasn’t yet done so. The crack down on tax avoidance may partially undo Coalition attempts to ensure the UK remains competitive on business taxation.

Rome has had a tough year, with some of the familiar stereotypes about mob rule being vindicated in style. But it is still the most fantastic city on earth, and you couldn't make a better choice for a summer break

The child who runs into traffic or seeks to jam a toy into an electrical socket needs to understand that they're not to do that act again. Sometimes a stern word will do. Sometimes a smack is required. The parent on the spot is better placed to decide that than a UN committee

Kerry is more concerned with the sensibilities of undemocratic Islamic countries than with the legitimate powers of Congress. His mocking, disrespectful remarks about Israel and Congress may be a sign of subconscious insecurity about the shaky deal he has reached with Iran

The EU sought to use regional identities such as in Catalonia and Scotland to weaken unitary member states in a divide and rule policy to strengthen the superstate. But, as ever, it is playing sorceror's apprentice with forces it doesn't understand and can't control

The EU's neo-authoritarian tendencies mean that whenever there's a problem, Brussels always comes down in favour of yet more centralisation. The latest crazy idea is for a Eurozone government. But it won't work and is based on economic nonsense

Russia is continuing to aggressively expand and entrench its hold over South Ossetia and Abkhazia, while the West stands idly by despite bold words about supporting Georgia's territorial integrity. The West needs to step up and make good on its commitments, or risk losing Georgia to Russia forever

Barack Obama's international legacy will come down to a probably reasonable move to reconcile with Cuba, a possibly disastrous deal with Iran, and, this side of the pond, a gratuitous history of Brit-bashing based on shallow political correctness

London property prices are soaring in part due to the laundering of dirty money from foreign criminals. The problem of financial crime and corruption in Britain is vast, and British society is in denial about it

In recent days and weeks, we have seen the financial and political elite of Europe humiliate Greece. The country is being destroyed before our eyes. The Greeks feel trapped, with nowhere else to go. But Britain is not trapped, and we must get out of the EU before it's too late

The key to defeating Boko Haram is to send in units that actually know what they are doing in African warfare. If we want to win, we need to bite the bullet and bring in South Africa's toughest, and there were none tougher than Koevoet